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Old 09-16-2019, 06:37 PM
 
153 posts, read 145,298 times
Reputation: 175

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I just got a full time hourly job at a state university. It's low pay, but it's money coming in and I plan on using their resources and tuition remission to get my graduate degree as well.

I have two more days to pick my insurance from them.

They also have voluntary supplementary retirement plans that would be combined with my mandatory pension.

One of the voluntary plans is through Fidelity.

Is Fidelity good? Which plan should I choose. I have no real idea what I'm doing lol.

I also would like to invest and apparently Fidelity is good to do that with as well right? With my little paycheck 20 dollars a month is probably all I can do. I would like to invest a 100 a month if I can though.

What is a Roth?

This is the plan. Which one?
403(b) plan
457(b) plan
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Old 09-16-2019, 07:02 PM
 
Location: Boston
8,797 posts, read 2,571,645 times
Reputation: 6218
The Four Pillars of Investing: Lessons for Building a Winning Portfolio, by William Bernstein.

buy a copy, yes, Fidelity is fine.
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Old 09-16-2019, 07:28 PM
 
26,564 posts, read 33,596,288 times
Reputation: 33397
"This is the plan. Which one?
403(b) plan
457(b) plan"

In a nutshell, here are the differences. Personally, I would (and did) choose the 457b plan.

https://www.weareteachers.com/403b-or-457b/

403b plans have been around a very long time, and they use to be always annutity-based plans. I think some have evolved in recent years, but I have always read enough negatives about them to stay away. 457b plans were created in 1978, but they had low contributions limits that made them not too popular. That changed in 2001 and now the limits match the other defined benefit plans.

Generally, this is considered the best "pro" with a 457b:

"the 457(b) plan offers a sneak-attack savings option: the ability to contribute almost double to your retirement savings if you’re close to retirement. The ability to take distributions before age 59 if you’re already retired without penalty is also a huge benefit."
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Old 09-17-2019, 04:47 AM
 
Location: The Triad (NC)
29,217 posts, read 63,522,945 times
Reputation: 33612
Quote:
Originally Posted by fantasy09 View Post
Is Fidelity good to go with for retirement and to invest?
a) it's likely to be as good as any other choice
b) it will take DECADES to know if that's wrong
Quote:
I just got a full time hourly job at a state university.
I also would like to invest ...
Learn to live on far less than you earn.
Commit to a save/invest contribution (as a % of your gross income).
Quote:
It's low pay, but...
It'll be a while before you need to consider the pretax options.
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Old 09-17-2019, 05:52 AM
 
Location: The South
5,453 posts, read 3,784,593 times
Reputation: 8390
Quote:
Originally Posted by fantasy09 View Post
I just got a full time hourly job at a state university. It's low pay, but it's money coming in and I plan on using their resources and tuition remission to get my graduate degree as well.

I have two more days to pick my insurance from them.

They also have voluntary supplementary retirement plans that would be combined with my mandatory pension.

One of the voluntary plans is through Fidelity.

Is Fidelity good? Which plan should I choose. I have no real idea what I'm doing lol.

I also would like to invest and apparently Fidelity is good to do that with as well right? With my little paycheck 20 dollars a month is probably all I can do. I would like to invest a 100 a month if I can though.

What is a Roth?

This is the plan. Which one?
403(b) plan
457(b) plan
Fidelity is great. Always pay yourself first.
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Old 09-17-2019, 06:40 AM
 
73,671 posts, read 73,489,172 times
Reputation: 51244
i will take fidelity over vanguard any day
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Old 09-17-2019, 08:41 AM
 
Location: WA
5,419 posts, read 21,594,667 times
Reputation: 6014
Over the last 40 years I have tried numerous firms but have decided Fidelity is the best choice.
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Old 09-17-2019, 04:27 PM
 
Location: Silicon Valley, CA
10,425 posts, read 6,847,595 times
Reputation: 6636
Quote:
Originally Posted by fantasy09 View Post
I just got a full time hourly job at a state university. It's low pay, but it's money coming in and I plan on using their resources and tuition remission to get my graduate degree as well.

I have two more days to pick my insurance from them.

They also have voluntary supplementary retirement plans that would be combined with my mandatory pension.

One of the voluntary plans is through Fidelity.

Is Fidelity good? Which plan should I choose. I have no real idea what I'm doing lol.

I also would like to invest and apparently Fidelity is good to do that with as well right? With my little paycheck 20 dollars a month is probably all I can do. I would like to invest a 100 a month if I can though.

What is a Roth?

This is the plan. Which one?
403(b) plan
457(b) plan
You'll have to go through each of the plans in details to see if it fits your needs. As a company, though, Fidelity is as good as anyone in terms of stability and reputation.
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Old 09-18-2019, 11:45 AM
 
3,035 posts, read 2,774,898 times
Reputation: 5772
Fidelity is excellent. Save as much as you can in those plans every month.
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Old 09-18-2019, 06:57 PM
 
26,602 posts, read 29,015,766 times
Reputation: 25617
Quote:
Originally Posted by fantasy09 View Post
I just got a full time hourly job at a state university. It's low pay, but it's money coming in and I plan on using their resources and tuition remission to get my graduate degree as well.

I have two more days to pick my insurance from them.

They also have voluntary supplementary retirement plans that would be combined with my mandatory pension.

One of the voluntary plans is through Fidelity.

Is Fidelity good? Which plan should I choose. I have no real idea what I'm doing lol.

I also would like to invest and apparently Fidelity is good to do that with as well right? With my little paycheck 20 dollars a month is probably all I can do. I would like to invest a 100 a month if I can though.

What is a Roth?

This is the plan. Which one?
403(b) plan
457(b) plan
Fidelity is a very large fund company and they have many investment options. They're fine.

But it's clear that you don't know anything about investing. For now, if you have a target date fund in your plan, pick the one closest for your birth date and keep adding as much money as you can.

In the meantime, learn the basics of investing. You should understand what a stock is, what a bond is, what a mutual fund is, etc.

As far as whether you should do the 403b or 457, it's hard to say because it's really about your behavior. The advantage (and disadvantage) to a 457 plan is that after you leave your employer, you can take the money out without having to pay a penalty (but you'll still pay regular income taxes). But that can be a bad thing if you take money out of your plan before you really should. If you accumulate a large 6 figure or 7 figure account balance before traditional retirement age, the 457 is probably worth it. At this point in your life, that may seem impossible, but if you keep increasing the amount you put in the plan, it can really add up over 25 years, which would still be before traditional retirement age if you're currently in your 20s.
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